Fitch and Barclays are reporting this loan flipped into Special Servicing due to imminent default. Roughly 2/3rds of the underlying properties are located around Baltimore and have heavy exposure to GSA tenants which were severely impacted by BRAC in that area.
Office Markets in places like Huntsville AL (where a large portion of civilian support positions were relocated due to BRAC) have benefited while areas in the greater DC area have been hurt.
Barclays notes that this could impact the AJ, but also highlights the other three COPT Office Portfolios in CMLT 2008-LS1 ($150mm, Northrop, the third largest tenant amongst the two collateral properties, terminated its lease and plans to leave this year), MSC 2006-HQ8 ($108.5mm), and GSMS 2006-GG6 ($103mm).
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4 comments:
Not a great time to have COPT's business model with so much exposure to NoVa. Adding to the challenge, the anticipated contractor demand around Ft Belvoir (a big winner in jobs from BRAC) is not materializing. I don't know if that is the case w/ respect to Fort Meade or not.
Where do you find out what absorbtion is like in a particular market such as Ft. Belvoir? REIS is my guess. On the CMBS front, COMM 2006-C7 got thwacked today by the 100%+ loss on 38mm Landmark Square; several classes wiped out.
You mean Lakeview Square Mall, but yes, thwacked beyond all recognition (TBAR'd ;)
And hopefully you are not in the Boscov's deal, BACM 06-3, where the $80mm One Campus Drive loan got reappraised at 14.7mm. Yootch
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